The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-06-18
the GOVERNMENT LOAN.

The oracle has spoken, and the
public are about as wise regarding
the new 6 per cent loan as they
were before it broke the ominous |
silence. Where is the loan, we
asked, and "echo answers, where!"
The explanation in this mornings
advertiser leaves everything in
doubt regarding the whereabouts of
the money, but makes the damaging
admission that the loan itself has
not been iloatcd at all, and that the
London syndicate, who have had the
manipulation of the public credit Of
the Hawaiian Kingdom, have been
making advances in anticipation of
ultimate realizations. This is what
all well-informed people understood,
despite contrary statements by
Financial Agents and other inter-
ested parties. The quotations of
the Hawaiian loan upon the London
Stock Exchange are evidently
"wash sales" and not bona fide
transactions, and the suggestively
crooked methods of this loan may
yet become the subject of investi-
cation by committee of the London
Exchange. BE this as it may, the
public will read with surprise the
following admission from the Gov
ernment organ:
"The Loan Act, approved Octo-
Der Is, 1886, authorized His Maj
esty's Government to borrow $2,-
900, 900. OF this amount $500, 900
was taken up in Honolulu and ST.
500, 900, or rather 100000, were
to be negotiated for in London;
100000, or say $1,000, 900, was
offered ON the money market of this
great financial center, and more
than ten times the amount was
speedily subscribed for. There
being no bonds ready for issuance
at the time, the subscribers were
not called upon for any payments
beyond small guarantee percentage
of the amount subscribed. How
ever, the financial agents having
charge of the transaction have adj
vanced the Government on loan ac-
count 100000, of which the sum
of $4S5, 900 was remitted to San
Francisco some time ago, and the
Government has advices at this
time of an additional remittance OF
$315, 900 on Government Loan Ac.
count
Those who understand anything
about Government loans will recog'
nize in the foregoing an admission
of failure, so far as a popular loar
is concerned, despite the statemen
that ''more than ten times TIN
amount was speedily subscribed
for" There is nothing to preven
those who subscribed to the loan il
the first instance, forfeitiGg thei
"small guarantee percentage of thu
amount subscribed, and this il
probably what will happen in
majority of cases when the rea
character of the transaction becomes
known in London. But whether o.
no, the fact is now patent TO al
that this is syndicate loan and no
popular English loan.
There is 1T appears an unbor
rowed balance of 100000, of tn
total sum of ~, 100000 authorized
to be raised by the Loan Act, 1886
and in the interest of the public W
protest most strenuously agains
pawning the public credit to an.
brokers' syndicate for that amount
Let at least one-fourth of the loal
be saved from brokerage and BAN
shavings until such time as tn
Treasury, through the AdvertiSe
or otherwise, publishes detaile'
statement of the actual expense o
floating this loan, together wit
details of what has become of th
money, receipt of which has beel
acknowledged by that paper, ant
partially SO by the Finance Ministe
in his official statement Of Treasur.
transactions upon to March 81
1887.